Oil prices eased during Asian trading on Tuesday as concerns over Chinese demand and anticipation of the Federal Reserve’s interest rate decision kept investors cautious.
By 2:55 pm AEDT (3:55 am GMT) Brent crude edged down $0.06 or 0.1% to US$73.82 per barrel, while U.S. West Texas Intermediate (WTI) crude dipped $0.09 or 0.1% to $70.82 per barrel.
The recent retreat in oil prices followed last week's gains of 1.3%, as sentiment was tempered by weak consumer spending data from China.
Investors also adopted a cautious stance ahead of the Federal Reserve’s final two-day policy meeting of the year. The CME FedWatch Tool indicates a 95.4% chance of a 25-basis point cut.
This meeting will provide crucial insights into the Fed’s policy trajectory, including expectations for further rate cuts in 2025 and 2026.
It will also assess the potential for scaled-back easing measures in light of inflationary pressures anticipated under the incoming Trump administration.